Kevin Warsh was sworn in Friday as the 17th chair of the Federal Reserve, taking over from Jerome Powell at a White House ceremony beside President 
Donald Trump, who had spent months publicly pressuring Powell to cut interest rates. Supreme Court Justice Clarence Thomas administered the oath, The Hill reported. Trump said he wanted the new chair to be "totally independent," the BBC reported.
Who is Warsh? Warsh has promised the biggest shakeup at the central bank in decades, the Japan Times reported, with Trump telling him to do his "own thing" at the ceremony. Warsh is a controversial pick whose central question is whether he can preserve the Fed's independence or become "Trump's puppet," per DW's profile of the new chair, and his appointment lands at a moment when the central bank's independence is under unusual public scrutiny from both the White House and Congress.
What changes now? Trump has repeatedly said he wants the Fed to lower rates, but futures traders forecast no chance of a cut in 2026 and instead see hikes ahead, Cointelegraph reported. The Senate confirmed Warsh earlier this month in a 54-45 vote, the Hill reported, ending a months-long fight over Powell's successor.
Why does the "independent" framing matter? Trump piled major public pressure on Powell to cut rates throughout his predecessor's final stretch, the BBC reported, and the new "totally independent" line lets the White House preempt criticism of an appointment seen by markets as politically aligned. Warsh's tenure is shaping up as the first test of whether a chair installed under those conditions can plausibly run a hands-off central bank, per DW's analysis.
Figures referenced: Donald Trump. — JudgeMarket.
